US cancels Intel and Qualcomm licenses for supplying chips to Huawei: Report

A recent report suggests that the US authorities canceled the licenses of Intel and Qualcomm for selling advanced chips to Huawei. The U.S. Commerce Department notified a few companies yesterday (Tuesday) about the newly made decision.

It is worth mentioning that the US government blocked licenses for chips shipment after Huawei launched the dynamic MateBook X Pro 2024 in its home ground.

Early reports have mentioned that the release of the new notebook from Huawei has raised the temper of the U.S. government as the device equips the latest Intel Core Ultra 9 with significant AI capabilities and many other advanced-like tech features.

Although these chips didn’t count under the pre-existing license scenario or new trade rules for China, the U.S. lawmaker showed rage towards this action and cited that such approvals regarding high-end technologies should stop at the earliest.

It looks like following the same ‘Intel chip equipped laptop’ reason, the US has now revoked Intel and Qualcomm licenses for selling new or other chips to Huawei.

When asked, the US Commerce Department confirmed that they have canceled some of the licenses for exports to Huawei. Though they hadn’t revealed firm’s name. The Republican Congresswoman – Elise Stefanik also kept her word on this matter, saying:

“This action will bolster U.S. national security, protect American ingenuity, and diminish Communist China’s ability to advance its technology.”

Intel Core chips (Image Credits: Intel)

Bad situation for both sides!

Even though Huawei is working on a self-developed Kirin PC chip, a halt on the Intel and Qualcomm chips shipment might impact the company as it still depends on these processors to some extent. It will also affect those doing business with Huawei.

The Trump era allowed companies like Intel to ship their processors to China. However, the Biden administration has been looking for a long time to mark a complete pause on this moment, in favor of its nation and consumers’ security.

Intel has already begun encountering low demands for PC chips in the market and lost $11 billion in stock market value last month. Probably, such decisions will impact both sides until Huawei discovers a new and independent solution for its notebooks.

[Source – Reuters]